Aloula Geojit Capital IPO Fund
Aloula Geojit Capital IPO Fund Managed by Al Oula Geojit Capital Company Kingdom of Saudi Arabia Auditors’ Limited Review Report And Interim Financial Statements for the Period From 7 December 2015 to 30 June 2016 (Unaudited)
Aloula Geojit Capital IPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia
Index
Page
Exhibit
Interim Statement of Financial Position as of 30 June 2016 (Unaudited)
2
A
Interim Statement of Income for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
3
B
Interim Statement of Cash Flow for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
4
C
Interim Statement of Changes in Net Assets Attributable to Unit holders for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
5
D
Notes to the Interim Financial Statements for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
6-9
Auditors’ Limited Review Report
I
3
Talal Abu—Ghazaleh & Co.
CertifiedPublicAccountants
_HltIV/ LZ/ /lI/rrrca,
License No. 323111181 Dated 5/711416
The Unit holders of Aloulu Geojit Capital IPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia
Auditors’ Limited Review Report Scope of Review
We have reviewed the accompanying interim statement of financial position of Aloula Geojit Capital IPO Fund (the “Fund”) managed by Aloula Gcojit Capital Company (the “Fund Manager”) as of 30 June 2016 and the related interim statements of income, cash flow and changes in net assets attributable to unit holders for the period from 7 December 2015 to 30 June 2016. These interim financial statements are the responsibility of the Fund Manager who has prepared and submitted them to us alone with the all information requested. We conducted our limited review in accordance with the Standard on Review of Interim Financial Reporting set forth by the Saudi Organization for Certified Public Accountants. A limited review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion on the financial statements; therefore, we do not express such opinion. Conclusion
Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements in order for them to be in conformity with generally accepted accounting standards in the Kingdom of Saudi Arabia. For Talal Abu-Ghazaleh & Co.
leed A. Bamaroul Certified Public Accountant License No. 408 04 Dhu Al-Qudah 1437 H. 07 August 2016G.
Olaya Main St. Beside Ministry of Interior, Tel.: +96611 464 2936 Fax:+966114659915 P.O.Box: 9767, Riyadh 11423 Saudi Arabia
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www.tagi.com tagco.niyadh@tagm
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Aloula Ceojit Capital IPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Interim Statement of Financial Position As of 30 June 2016 (Unaudited)
Exhibit A Note
Assets Cash and cash equivalents Investments held for trading Other assets Total Assets Liabilities Due to fund manager Accrued expenses and others Total Liabilities Net Assets Attributable to the Unit Holders tJnits in issue (numbers) Net assets attributable to each unit (SR)
2016 SR. 2,148,718 1,012,893 12,890 3,174,501
(5)
(7)
—
20,960 29,741 50,701 3,123,800
Exhibit D —
The Accompanying Notes from (1) to (11) Constitute an Integral Part of These Interim Financial Statements
295,732 10.563
Aloula (;eojit Capital I P0 Fund Managed by Aloula (;eojit Capital Company Kingdom of Saudi Arabia Interim Statement of Income For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
Exhibit B
Note
For the period from 7 December 2015 to 3OJune2Ol6 SR.
—
Investment income Trading income, net Total Expenses Management fee Administration fee Custody fee Other expenses Net income for the period
(6)
—
Exhibit D
The Accompanying Notes from (I) to (11) Constitute an Integral Part of These Interim Financial Statements
355,940 355,940 (22,915) (1,528) (1,833) (46,031) 283,633
Aloula Ceojit Capital I P0 Fund Managed by Aloula (cojit Capital Company Kingdom of Saudi Arabia Interim Statement of Cash Flow For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
Exhibit C For the period from 7 December2015 to 30 June 2016 SR.
Cash Flow from Operating Activities Net income for the period
283,633
Adlustment for: Realized (gain) on disposal of investments held for trading Unrealized loss on revaluation of investments held for trading Changes in Operating Assets and Liabilities Other assets Payable to fund manager Accrued expenses and others Net cash (used in) operating activities
(343,004) 310
(12,890) 20,960 29,741 (21,250)
Cash Flow from Investing Activities Purchase of investments held for trading Proceeds from disposal of investments held for trading Net cash (used in) investing activities Cash Flow from Financing Activities Proceeds from units issued Payments against redemption of units Net cash from financing activities Net increase in cash and cash equivalents during the period Cash and cash equivalents, beginning of the period Cash and Cash Equivalents, End of the Period— Exhibit A The Accompanying Notes from (1) to (ii) Constitute an Integral Part of These Interim Financial Statements
-4-
(3,776,679) 3,106,480 (670,199)
8,994,390 (6,154,223) 2,840,167 2,148,718 --
2,148,718
A lou Ia Ceoj it Capital I P0 Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Interim Statement of Changes in Net Assets Attributable to Unit Holders For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
ExhibitD
For the period from 7 December 2015 to 30 June 2016 SR. Changes from operations: Net income for the period Exhibit B
283,633 283,633
—
Changes from unit transactions: Proceeds from units sold Value of units redeemed Net changes from unit transactions Net assets attributable to unit holders at end of the period
-
Exhibit A
8,994,390 (6,154,223) 2,840,167 3,123,800
Unit Transactions: Transactions in units for the period from 7 December 2015 to 30 June 2016 are summarized as follows: Unit Changes from unit transactions Units sold Units redeemed Units at end of the period Exhibit A
876,344 (580,612) 295,732
-
The Accompanying Notes from (1) to (11) Constitute an Integral Part of These Interim Financial Statements
-5-
A loula Geojit Capital 1 P0 Fun(l
Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December_2015_to_30_June_2016_(Unaudited) 1-
The Fund and Its Activities: Aloula Geojit Capital IPO Fund (“the Fund”) is an open-ended fund managed through an agreement between Aloula Geojit Capital Company (the “Fund Manager”) and the Fund Investors (the “Unit holders”). Accordingly, the Fund Manager is managing the Fund. In dealing with the Unit holders, the Fund Manager considers the Fund as an independent unit. Accordingly. the Fund Manager prepares separate financial statements for the Fund. The Fund commenced its operations on 7 December 2015. The books and records of the Fund are maintained in Saudi Riyals (SR). The objective of the Fund is to achieve capital appreciation with optirnLml returns, by investing in Initial Public Offering (lPO) and Rights issue of listed Saudi companies. The Fund also invests in recently listed Saudi and Gulf companies within three years of listing. These are the first interim financial statements of the Fund and cover the period from 7 December 2015 to 30 June 2016; hence, comparative information is not presented.
2-
Regulating Authority: The Fund is governed by the Investment Fund Regulations (the “Regulations”) published by Capital Market Authority (CMA) on 22 DhLLI Hijja 1427H. (corresponding to 12 January 2007), detailing requirements for all funds within the Kingdom of Saudi Arabia.
3-
Basis of Preparation: a-
Statement of Compliance: These interim financial statements have been prepared in accordance with the interim financial statements issued by the Saudi Organization of Certified Public Accountants (SOCPA).
b-
Basis of measurement: These interim financial statements are prepared under the historical cost convention modified to include the measurement at fair value for the investments held for trading.
c-
Functional and presentation currency: These interim financial statements have been presented in Saudi Arabian Riyal (SR), which is the functional currency of the Fund.
d-
Use of Estimates and Judgments: In the ordinary course of business, the preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods affected.
4-
Significant Accounting Policies: The significant accounting policies adopted are as follows: a)
Revenue recognition: Trading income includes movement in unrealized gains!(losses) from changes in fair value, realized gains (losses) from sale of trading investments and dividends from trading investments. Realized gains (losses) on trading investments sold are determined on a weighted average cost basis. Dividend income is recognised when declared i.e. when Fund’s right to receive the dividend is established.
b)
Investment valuation: Equity investments which are purchased for trading purposes are valued at their market price as of statement of financial position date. Investments in mutual funds are valued on the basis of net assets values published by the Fund Manager. Investment transactions are accounted for as of trade date.
-6-
Alouhi (;cojit Capital lPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
5-
c)
Zakat and income tax: Zakat and income tax are the obligations of the Unit holders and are not provided for in the accompanying interim financial statements.
d)
Foreign currencies: Transactions in foreign currencies are translated into Saudi Rival at the rates of exchange prevailing at the dates of the transaction Assets and liabilities in foreign currencies at the statement of financial position date are retranslated at the rates of exchange ruling at that date. Resulting exchange gains or losses are taken to the statement of income.
Investments Held for Trading: a) The composition of the trading investments portfolio on statement of financial position date are as follows: % of market Market Cost value value SR. % SR. Equity investments (by sector) Manufacturing 259,920 24.71 250,245 Fashion 75.29 762,648 753,283 1,013,203 100.00 Total 1,012,893 Total Exhibit A —
Equity investments as traded on the Saudi stock exchange (Tadawul) are unrated. The Fund also does not have an internal grading mechanism. However, the Fund Manager seeks to limit the risks by monitoring investments’ sector exposures and setting limits for individual sectors. b)
The movement in investments held for trading for the period from 7 December 201 5 to 30 June 2016 are as follows: SR. 3,776,679 (3,106,480) 670,199 (310) 343,004 1,012,893
Purchases during the period Proceeds from disposals during the period Net Unrealized (loss) on revaluation of investments Realized gain on disposal of investments Total Note (5/a) —
6-
Trading Income, Net: The details of this item are as follows:
Dividend income Realized gain on disposal of investments held for trading Unrealized (loss) on revaluation of investments held for trading Total Exhibit B —
-7-
For the period from 7 December2015 to 30 June 2016 SR. 13,246 343,004 (310) 355,940
A lou Ia Geoj it Capital I P() Fu iid Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December 2015 to 30 June 2016 (Unaudited) 7-
Related Parties Transactions and Balances: Related parties of the Fund include Unit holders, the Fund Manager and other funds managed by the Fund manager. All transactions with related parties are carried out on the basis of mutually agreed prices under the formal agreement. The Fund paid a management fee, administration fee and custody fee at an annual rate of 1.50%. 0.10% and 0. 1 2% respectively of the net asset value at each valuation date. The management fees reflected in the interim statement of income represent the fee charged by Fund Manager during the period. Trade transactions on Tadawul and other countries’ stock exchanges are executed through Aloula Geojit Capital Company, which is also the custodian of the Fund’s investments. Related party transactions for the period from 7 December 2015 to 30 June 2016 and balances arising therefrom are as under: Nature of transactions
Related party
Al Oula Geojit Capital Company (Fund Manager) Board Members
Transaction amounts For the period from 7 December 2015 to 30 June 2016 SR.
Fund management, administration and custody fee Board fee
26,276 11,342
The above transactions resulted in the following balance due to related party: 2016 SR.
Al Oula Geojit Capital Company (Fund Manager) 8-
—
Exhibit A
20,960
Risk Mana2ement: Credit Risk Credit risk is the risk that one party to a financial instrument fails to discharge an obligation and cause other party to incur a financial loss. The Fund is exposed to credit risk on its bank balances and dividends receivables, however the bank balance is maintained with a reputed local bank in the Kingdom of Saudi Arabia, hence the credit risk is not considered significant. Equity Price Risk Equity price risk is the risk that the fair values of equity investments decrease as a result of changes in the levels of equity indices and the value of individual stocks. The Fund Manager endeavors to minimize the risk through diversification across various sectors of the Saudi and Gulf stock markets. Further, the Fund Manager has established risk guidelines to mange its equity price risk. Liquidity risk Liquidity risk is the risk that the Fund may encounter difficulty in generating funds to meet commitments associated with financial liabilities, which comprise of fund management and administration fee payable. Liquidity requirements are monitored on a regular basis and Fund Manager ensures that sufficient funds are available to meet any commitment as it arises. Currency Risk Currency risk is the risk that the value of a financial instrument may fluctuate due to a change in foreign exchange rates. The Fund does not have any transactions in foreign currency and accordingly it is not exposed to any currency risk.
-8-
A loula Ceo jit Capital IP() Fund Managed by Aloula Ceojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December 2015 to 30 June 2016 (Unaudited) 9-
Fair Values of Financial Instruments Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. Financial instruments comprise financial assets and financial liabilities. The Fund’s financial assets consist of investments held for trading and cash and cash equivalent: its financial liabilities are fees payable. Investment held for trading are carried at fair values. Ihe fair values of other financial instruments are not materially different from their carrying values.
10-
Last Valuation Day The last valuation day of the period was 30 June 2016.
11-
Approval of the Interim Financial Statements These interim financial statements were approved by the Board on 04 Dhu Al-Qadah 1437H. corresponding to 07 August 2016G.
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Aloula Geojit Capital IPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia
Index
Page
Exhibit
Interim Statement of Financial Position as of 30 June 2016 (Unaudited)
2
A
Interim Statement of Income for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
3
B
Interim Statement of Cash Flow for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
4
C
Interim Statement of Changes in Net Assets Attributable to Unit holders for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
5
D
Notes to the Interim Financial Statements for the Period from 7 December 2015 to 30 June 2016 (Unaudited)
6-9
Auditors’ Limited Review Report
I
3
Talal Abu—Ghazaleh & Co.
CertifiedPublicAccountants
_HltIV/ LZ/ /lI/rrrca,
License No. 323111181 Dated 5/711416
The Unit holders of Aloulu Geojit Capital IPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia
Auditors’ Limited Review Report Scope of Review
We have reviewed the accompanying interim statement of financial position of Aloula Geojit Capital IPO Fund (the “Fund”) managed by Aloula Gcojit Capital Company (the “Fund Manager”) as of 30 June 2016 and the related interim statements of income, cash flow and changes in net assets attributable to unit holders for the period from 7 December 2015 to 30 June 2016. These interim financial statements are the responsibility of the Fund Manager who has prepared and submitted them to us alone with the all information requested. We conducted our limited review in accordance with the Standard on Review of Interim Financial Reporting set forth by the Saudi Organization for Certified Public Accountants. A limited review consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion on the financial statements; therefore, we do not express such opinion. Conclusion
Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial statements in order for them to be in conformity with generally accepted accounting standards in the Kingdom of Saudi Arabia. For Talal Abu-Ghazaleh & Co.
leed A. Bamaroul Certified Public Accountant License No. 408 04 Dhu Al-Qudah 1437 H. 07 August 2016G.
Olaya Main St. Beside Ministry of Interior, Tel.: +96611 464 2936 Fax:+966114659915 P.O.Box: 9767, Riyadh 11423 Saudi Arabia
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www.tagi.com tagco.niyadh@tagm
t tail Y”
Jt
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Aloula Ceojit Capital IPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Interim Statement of Financial Position As of 30 June 2016 (Unaudited)
Exhibit A Note
Assets Cash and cash equivalents Investments held for trading Other assets Total Assets Liabilities Due to fund manager Accrued expenses and others Total Liabilities Net Assets Attributable to the Unit Holders tJnits in issue (numbers) Net assets attributable to each unit (SR)
2016 SR. 2,148,718 1,012,893 12,890 3,174,501
(5)
(7)
—
20,960 29,741 50,701 3,123,800
Exhibit D —
The Accompanying Notes from (1) to (11) Constitute an Integral Part of These Interim Financial Statements
295,732 10.563
Aloula (;eojit Capital I P0 Fund Managed by Aloula (;eojit Capital Company Kingdom of Saudi Arabia Interim Statement of Income For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
Exhibit B
Note
For the period from 7 December 2015 to 3OJune2Ol6 SR.
—
Investment income Trading income, net Total Expenses Management fee Administration fee Custody fee Other expenses Net income for the period
(6)
—
Exhibit D
The Accompanying Notes from (I) to (11) Constitute an Integral Part of These Interim Financial Statements
355,940 355,940 (22,915) (1,528) (1,833) (46,031) 283,633
Aloula Ceojit Capital I P0 Fund Managed by Aloula (cojit Capital Company Kingdom of Saudi Arabia Interim Statement of Cash Flow For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
Exhibit C For the period from 7 December2015 to 30 June 2016 SR.
Cash Flow from Operating Activities Net income for the period
283,633
Adlustment for: Realized (gain) on disposal of investments held for trading Unrealized loss on revaluation of investments held for trading Changes in Operating Assets and Liabilities Other assets Payable to fund manager Accrued expenses and others Net cash (used in) operating activities
(343,004) 310
(12,890) 20,960 29,741 (21,250)
Cash Flow from Investing Activities Purchase of investments held for trading Proceeds from disposal of investments held for trading Net cash (used in) investing activities Cash Flow from Financing Activities Proceeds from units issued Payments against redemption of units Net cash from financing activities Net increase in cash and cash equivalents during the period Cash and cash equivalents, beginning of the period Cash and Cash Equivalents, End of the Period— Exhibit A The Accompanying Notes from (1) to (ii) Constitute an Integral Part of These Interim Financial Statements
-4-
(3,776,679) 3,106,480 (670,199)
8,994,390 (6,154,223) 2,840,167 2,148,718 --
2,148,718
A lou Ia Ceoj it Capital I P0 Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Interim Statement of Changes in Net Assets Attributable to Unit Holders For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
ExhibitD
For the period from 7 December 2015 to 30 June 2016 SR. Changes from operations: Net income for the period Exhibit B
283,633 283,633
—
Changes from unit transactions: Proceeds from units sold Value of units redeemed Net changes from unit transactions Net assets attributable to unit holders at end of the period
-
Exhibit A
8,994,390 (6,154,223) 2,840,167 3,123,800
Unit Transactions: Transactions in units for the period from 7 December 2015 to 30 June 2016 are summarized as follows: Unit Changes from unit transactions Units sold Units redeemed Units at end of the period Exhibit A
876,344 (580,612) 295,732
-
The Accompanying Notes from (1) to (11) Constitute an Integral Part of These Interim Financial Statements
-5-
A loula Geojit Capital 1 P0 Fun(l
Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December_2015_to_30_June_2016_(Unaudited) 1-
The Fund and Its Activities: Aloula Geojit Capital IPO Fund (“the Fund”) is an open-ended fund managed through an agreement between Aloula Geojit Capital Company (the “Fund Manager”) and the Fund Investors (the “Unit holders”). Accordingly, the Fund Manager is managing the Fund. In dealing with the Unit holders, the Fund Manager considers the Fund as an independent unit. Accordingly. the Fund Manager prepares separate financial statements for the Fund. The Fund commenced its operations on 7 December 2015. The books and records of the Fund are maintained in Saudi Riyals (SR). The objective of the Fund is to achieve capital appreciation with optirnLml returns, by investing in Initial Public Offering (lPO) and Rights issue of listed Saudi companies. The Fund also invests in recently listed Saudi and Gulf companies within three years of listing. These are the first interim financial statements of the Fund and cover the period from 7 December 2015 to 30 June 2016; hence, comparative information is not presented.
2-
Regulating Authority: The Fund is governed by the Investment Fund Regulations (the “Regulations”) published by Capital Market Authority (CMA) on 22 DhLLI Hijja 1427H. (corresponding to 12 January 2007), detailing requirements for all funds within the Kingdom of Saudi Arabia.
3-
Basis of Preparation: a-
Statement of Compliance: These interim financial statements have been prepared in accordance with the interim financial statements issued by the Saudi Organization of Certified Public Accountants (SOCPA).
b-
Basis of measurement: These interim financial statements are prepared under the historical cost convention modified to include the measurement at fair value for the investments held for trading.
c-
Functional and presentation currency: These interim financial statements have been presented in Saudi Arabian Riyal (SR), which is the functional currency of the Fund.
d-
Use of Estimates and Judgments: In the ordinary course of business, the preparation of interim financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods affected.
4-
Significant Accounting Policies: The significant accounting policies adopted are as follows: a)
Revenue recognition: Trading income includes movement in unrealized gains!(losses) from changes in fair value, realized gains (losses) from sale of trading investments and dividends from trading investments. Realized gains (losses) on trading investments sold are determined on a weighted average cost basis. Dividend income is recognised when declared i.e. when Fund’s right to receive the dividend is established.
b)
Investment valuation: Equity investments which are purchased for trading purposes are valued at their market price as of statement of financial position date. Investments in mutual funds are valued on the basis of net assets values published by the Fund Manager. Investment transactions are accounted for as of trade date.
-6-
Alouhi (;cojit Capital lPO Fund Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December 2015 to 30 June 2016 (Unaudited)
5-
c)
Zakat and income tax: Zakat and income tax are the obligations of the Unit holders and are not provided for in the accompanying interim financial statements.
d)
Foreign currencies: Transactions in foreign currencies are translated into Saudi Rival at the rates of exchange prevailing at the dates of the transaction Assets and liabilities in foreign currencies at the statement of financial position date are retranslated at the rates of exchange ruling at that date. Resulting exchange gains or losses are taken to the statement of income.
Investments Held for Trading: a) The composition of the trading investments portfolio on statement of financial position date are as follows: % of market Market Cost value value SR. % SR. Equity investments (by sector) Manufacturing 259,920 24.71 250,245 Fashion 75.29 762,648 753,283 1,013,203 100.00 Total 1,012,893 Total Exhibit A —
Equity investments as traded on the Saudi stock exchange (Tadawul) are unrated. The Fund also does not have an internal grading mechanism. However, the Fund Manager seeks to limit the risks by monitoring investments’ sector exposures and setting limits for individual sectors. b)
The movement in investments held for trading for the period from 7 December 201 5 to 30 June 2016 are as follows: SR. 3,776,679 (3,106,480) 670,199 (310) 343,004 1,012,893
Purchases during the period Proceeds from disposals during the period Net Unrealized (loss) on revaluation of investments Realized gain on disposal of investments Total Note (5/a) —
6-
Trading Income, Net: The details of this item are as follows:
Dividend income Realized gain on disposal of investments held for trading Unrealized (loss) on revaluation of investments held for trading Total Exhibit B —
-7-
For the period from 7 December2015 to 30 June 2016 SR. 13,246 343,004 (310) 355,940
A lou Ia Geoj it Capital I P() Fu iid Managed by Aloula Geojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December 2015 to 30 June 2016 (Unaudited) 7-
Related Parties Transactions and Balances: Related parties of the Fund include Unit holders, the Fund Manager and other funds managed by the Fund manager. All transactions with related parties are carried out on the basis of mutually agreed prices under the formal agreement. The Fund paid a management fee, administration fee and custody fee at an annual rate of 1.50%. 0.10% and 0. 1 2% respectively of the net asset value at each valuation date. The management fees reflected in the interim statement of income represent the fee charged by Fund Manager during the period. Trade transactions on Tadawul and other countries’ stock exchanges are executed through Aloula Geojit Capital Company, which is also the custodian of the Fund’s investments. Related party transactions for the period from 7 December 2015 to 30 June 2016 and balances arising therefrom are as under: Nature of transactions
Related party
Al Oula Geojit Capital Company (Fund Manager) Board Members
Transaction amounts For the period from 7 December 2015 to 30 June 2016 SR.
Fund management, administration and custody fee Board fee
26,276 11,342
The above transactions resulted in the following balance due to related party: 2016 SR.
Al Oula Geojit Capital Company (Fund Manager) 8-
—
Exhibit A
20,960
Risk Mana2ement: Credit Risk Credit risk is the risk that one party to a financial instrument fails to discharge an obligation and cause other party to incur a financial loss. The Fund is exposed to credit risk on its bank balances and dividends receivables, however the bank balance is maintained with a reputed local bank in the Kingdom of Saudi Arabia, hence the credit risk is not considered significant. Equity Price Risk Equity price risk is the risk that the fair values of equity investments decrease as a result of changes in the levels of equity indices and the value of individual stocks. The Fund Manager endeavors to minimize the risk through diversification across various sectors of the Saudi and Gulf stock markets. Further, the Fund Manager has established risk guidelines to mange its equity price risk. Liquidity risk Liquidity risk is the risk that the Fund may encounter difficulty in generating funds to meet commitments associated with financial liabilities, which comprise of fund management and administration fee payable. Liquidity requirements are monitored on a regular basis and Fund Manager ensures that sufficient funds are available to meet any commitment as it arises. Currency Risk Currency risk is the risk that the value of a financial instrument may fluctuate due to a change in foreign exchange rates. The Fund does not have any transactions in foreign currency and accordingly it is not exposed to any currency risk.
-8-
A loula Ceo jit Capital IP() Fund Managed by Aloula Ceojit Capital Company Kingdom of Saudi Arabia Notes to the Interim Financial Statements For the Period from 7 December 2015 to 30 June 2016 (Unaudited) 9-
Fair Values of Financial Instruments Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm’s length transaction. Financial instruments comprise financial assets and financial liabilities. The Fund’s financial assets consist of investments held for trading and cash and cash equivalent: its financial liabilities are fees payable. Investment held for trading are carried at fair values. Ihe fair values of other financial instruments are not materially different from their carrying values.
10-
Last Valuation Day The last valuation day of the period was 30 June 2016.
11-
Approval of the Interim Financial Statements These interim financial statements were approved by the Board on 04 Dhu Al-Qadah 1437H. corresponding to 07 August 2016G.
-9-
